Says it won't halt plans for apartments in E. Jerusalem

JERUSALEM — Calling Israel's sovereignty over Jerusalem indisputable, Prime Minister Benjamin Netanyahu on Sunday rejected U.S. demands to stop plans to build 20 Jewish-owned apartments in the eastern part of the city that Palestinians regard as key to their future state.

The decision to allow new housing on land annexed by Israel after the Six-Day War of 1967 will likely further agitate relations with the Obama administration, which has been pressuring Netanyahu to halt the expansion of settlements in hopes of reviving the Middle East peace process and enticing Arab nations to normalize relations with the Jewish state.

The sensitivity concerning the project, proposed by a Jewish-American millionaire, was highlighted over the weekend when Israeli officials said the country's ambassador to Washington, Michael B. Oren, was summoned to the State Department.

But Netanyahu, referring to news reports about U.S. opposition to the plan, was unwavering, saying a united Jerusalem was the capital of Israel and there would be no limits on Jewish construction.

While refusing to rule out natural growth in existing settlements, Israel has pledged not to build new settlements and not to confiscate more land. Israel considers projects in East Jerusalem to be legitimate expansions.

"We cannot accept the idea that Jews will not have the right to live and purchase [homes] anywhere in Jerusalem," Netanyahu said at the start of his weekly Cabinet meeting. "I can only imagine what would happen if someone would propose that Jews could not live in certain neighborhoods of New York, London, Paris or Rome. There would certainly be a major international outcry. We cannot accept such a decree in Jerusalem."

Chief Palestinian negotiator Saeb Erekat said that Netanyahu's comments were a distraction from the peace process and that East Jerusalem, like the West Bank, would one day be freed from occupation to become part of a Palestinian state.